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Manila Water says to invest P8 billion in Pangasinan project

PHILSTAR

Manila Water Co., Inc. is investing P8 billion in a bulk water project in Pangasinan.

In a disclosure to the stock exchange, the company said it received the notice of ward from the Provincial Government of Pangasinan (PGP) for the joint venture project to supply bulk water to the province.

The project will be undertaken by the consortium composed of Manila Water and its wholly-owned subsidiary Manila Water Philippine Ventures, Inc.

“Upon completion of the conditions precedent, the Consortium and PGP shall sign a concession agreement to implement that project that has an estimated capital expenditure program of P8 billion over the 25-year contract period. It is estimated to deliver a billed volume of 200 million liters per day by Year 25,” the listed water firm said.

In a separate disclosure, Manila Water said it has recently signed with the state-run Metropolitan Waterworks and Sewerage System (MWSS) to amend its revised concession agreement (RCA).

The amendment sought to change the effective date, as well as the review and revision of the common purpose facilities agreement to “no later than Nov. 18, 2021.”

“The amendment synchronizes the effectivity dates of the revised concession agreements of the concessionaires (Manila Water and Maynilad Water Services, Inc.) of MWSS, as both concessionaires await the completion of the same remaining conditions to the effectivity of their respective RCAs,” the firm said.

Manila Water is the exclusive provider of water and used water services to the East Zone of Metro Manila and the Rizal province.

Shares of Manila Water in the local bourse shed 0.65% or 12 centavos to finish at P18.48 apiece on Friday. — Angelica Y. Yang

SM Markets aims to expand online services available in 100 locations

Company handout)

SM Markets is targeting to make its online services available to a hundred locations across key areas in the country by yearend, the company said in a statement on Friday.

SM Market Online or smmarkets.ph currently serves 70 branches in Metro Manila.

“To serve our customers safely and conveniently, we continue to innovate and broaden our digital presence to offer more touchpoints for our customers and communities in synergy with our brick and mortar stores,” said Jojo R. Tagbo, preside of SM Supermarket.

SM Markets Online may be downloaded via the GooglePlay Store and the Apple App Store. Select SM Market branches may also be reached through GrabMart.

SM Markets carries brands SM Supermarket, SM Hypermarket, and Savemore Market.

Through SM Markets Online, customers can buy their basic necessities, selected premium brands or specialty items, and the company’s in-house brand, SM Bonus.

Customers may pick up their orders or opt for delivery service. SM’s own Airspeed takes on most of its delivery services. Meanwhile, transactions may be paid for in cash, GrabPay, or through other card payments. — Keren Concepcion G. Valmonte

AboitizPower’s bonds secure top credit rating

The Philippine Rating Services Corp. (PhilRatings) has assigned a PRS Aaa rating with a stable outlook to AboitizPower Corp. for its proposed issuance of up to P12 billion in bonds.

This as the company on Thursday said it sought the

Securities and Exchange Commission’s approval for the bond offering.

The issuance forms the second tranche of its P30-billion securities under its shelf registration program.

In its statement, PhilRatings said it has also retained its issue rating of PRS Aaa with a stable outlook on AboitizPower’s outstanding bonds valued at P38 billion.

The listed power firm said these securities were issued from July 2017 onwards.

“PRS Aaa” is deemed as the highest credit rating for long-term securities. The rating also shows the obligor’s “extremely strong” financial commitment to meet its obligations.

Meanwhile, a stable outlook indicates that the rating is likely to remain unchanged in the next 12 months.

PhilRatings listed down key rating factors which it used to assign the ratings to AboitizPower’s bonds. These included: a diversified portfolio with good growth prospects; experienced management team; improved financial performance in the first half of 2021; and healthy cash flows and adequate liquidity.

“(We) also considered that the power industry is seen to be relatively more stable amidst increasing economic uncertainty caused by the COVID-19 pandemic, given that electricity is an essential need,” it said.

AboitizPower is the listed holding firm for the Aboitiz group’s investments in power generation and distribution, retail electricity and other related services.

Shares of AboitizPower in the local bourse inched up by 2.1% or 65 centavos to finish at P31.65 apiece on Friday. — Angelica Y. Yang

Meralco to push through with disconnection activities in NCR

PHILIPPINE STAR/ MICHAEL VARCAS

Distribution utility Manila Electric Co. (Meralco) said on Friday that disconnection activities will continue in parts of the National Capital Region (NCR) that are not covered by granular lockdowns, following the government’s recent extension of the general community quarantine (GCQ) with alert level 4 status in Metro Manila.

In a statement issued on Viber on Friday, Meralco said that the disconnections will last until Oct. 15.

It will, however, be holding off from disconnections in areas under granular lockdown by their respective local governments.

Meanwhile, the provinces of Bulacan, Cavite, Laguna, Rizal and Lucena City in Quezon will not experience such activities until Oct. 15 since they are still under the modified enhanced community quarantine, a stricter lockdown classification.

Meralco added that it will carry on with its disconnection activities in other parts of the power provider’s franchise area, including Batangas and Quezon since these are under GCQ with heightened restrictions.

“Meralco remains to be very considerate during this period and vowed to assist customers with their concerns,” the firm said.

It also encouraged customers to reach out to them to discuss and clarify concerns, and come up with payment terms for their unsettled power bills.

Meralco added it will continue meter reading and bill delivery during this period.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., which has interest in BusinessWorld through the Philippine Star Group, which it controls. — Angelica Y. Yang

Upper-middle-income goal likely attainable by 2023

PHILSTAR

THE GOVERNMENT’S goal to make the Philippines an upper-middle-income country will likely be delayed by three years to 2023 due to the coronavirus disease 2019 (COVID-19) pandemic, an official from the National Economic and Development Authority (NEDA) said.

“As you know, we were supposed to be an upper-middle-income country towards the end of last year were it not for COVID, but right now we think that it will be pushed back, probably by 2023,” NEDA Undersecretary Rosemarie G. Edillon said in an online forum organized by the Asian Development Bank (ADB) on Friday.

Ms. Edillon said they have tapped the ADB to look into the “optimal governance structure” to support the country’s transition to an upper-middle-income economy, and eventually into a high-income economy.

In July, the World Bank reported the Philippines remained a lower middle-income economy in 2020 due to the impact of the pandemic.

The Philippines’ gross national income (GNI) per capita, which went down 11% to $3,430 last year from 2019, fell within the World Bank’s bracket for lower middle-income economies with a $1,046 to $4,095 GNI per capita.

The economy contracted by a record 9.6% last year after the government put the country under one of the world’s longest and tightest lockdowns to curb the spread of COVID-19.

The government targets 4-5% GDP growth this year. The economy expanded by 11.8% in the April to June period, ending five consecutive quarters of decline.

Officials expect the economy to return to its pre-crisis level by the fourth quarter of 2022 or the first quarter of 2023.

Ms. Edillon they are studying the experiences of neighboring countries that have become high-income economies to see how they approached savings and investment, capital markets, digital infrastructure, education and skills, and research and development in their transition.

“We hope to be able to come up with the proper preparation towards that transition and we look forward to the assistance being given by the ADB,” she said.

NEDA needs to enhance its knowledge management systems so it can improve its monitoring of economic developments, Socioeconomic Planning Secretary Karl Kendrick T. Chua said. He said they are currently working on various dashboards and enhancing their data repositories.

“This will allow us to monitor programs, projects, and internal processes more efficiently and give us more time to focus on the more value-adding aspects of our work,” Mr. Chua said. — LWTN

DoTr signs MRT-4 design contract agreement

THE Department of Transportation (DoTr) on Friday signed a contract agreement for the detailed architectural and engineering design of the Metro Rail Transit Line 4 (MRT-4) with a Spain-based firm.

The agency signed the deal with IDOM Consulting, Engineering, Architecture, SA for the 15.56-kilometer rail line that will link parts of eastern Metro Manila with the province of Rizal, the agency said in a press release.

IDOM is tasked to prepare the project’s preliminary design, detailed engineering and tender designs, loan processing documents, financial assessments, project and loan safeguards documents, and bidding documents.

The department said travel time between N. Domingo in San Juan and Taytay in Rizal will be just half an hour once the MRT-4 is fully operational. It will serve 234,433 passengers daily.

“The design stage for the project is slated in the 4th quarter of 2021. Meanwhile, early works for the project are targeted to commence in the 2nd quarter of 2022,” the DoTr said.

The project is funded by an official development assistance from the Asian Development Bank. — J.P. Ibañez

USAID to help DA improve fisheries sector

THE United States Agency for International Development (USAID) has signed a memorandum of understanding (MoU) with the Department of Agriculture (DA) to improve the country’s fisheries sector.

“Under this partnership, USAID and the DA’s Bureau of Fisheries and Aquatic Resources (BFAR) will work together to support the conservation and rehabilitation of habitats for fishery resources; institute reforms to address overfishing and illegal, unreported, and unregulated fishing; and incentivize conservation through private-sector engagement,” the US Embassy in the Philippines said in a statement posted on its website on Thursday.

The new initiative is in line with the Philippine government’s priority to improve fisheries management and conservation, and is seen to directly benefit resource-poor farmers and fishers.

The partnership also seeks to help national and local governments adopt an “ecosystem-based approach” to fisheries management.

“Our two countries share an enduring partnership in the areas of sustainable fisheries and marine biodiversity conservation. I am proud to say that our relationship grows stronger over time as we learn from each other and find more ways to collaborate around our shared goals,” US Embassy Chargé d’Affaires Heather Variava said.

The MoU will be implemented under the five-year Development Objective Grant Agreement for Enhanced Ecosystem and Community Resilience of the USAID and the National Economic and Development Authority. — A.Y. Yang

SEC, DICT ink agreement for cybercrime prevention programs

https://www.sec.gov.ph/

THE Securities and Exchange Commission (SEC) has signed an agreement with the Department of Information and Communications Technology (DICT) for cybercrime prevention initiatives.

The memorandum of agreement (MoA) between the SEC and DICT’s Cybercrime Investigation and Coordinating Center (CICC) is in line with the country’s Republic Act No. 10175 or the Cybercrime Prevention Act.

“Through this MoA, the commission can enhance our ability to adapt to more complex tools employed in fraudulent investment schemes so that we can implement adequate and preventive measures to avoid grave and irreparable damage to the investing public and employ the necessary detection procedures to ensure the capture of bad actors,” SEC Chairperson Emilio B. Aquino was quoted as saying.

The SEC and the CICC will be collaborating on cybercrime prevention initiatives.

The commission is tasked to provide the CICC information and data for the CICC’s programs and modules.

Meanwhile, the CICC will conduct seminars and workshops on cybercrime suppression and prosecution for the SEC. — KCGV

BSP makes full award of one-month bills

BW FILE PHOTO

THE BANGKO SENTRAL ng Pilipinas (BSP) fully awarded its offer short-term securities on Friday, even as its average rate inched higher due to data showing rising government debt.

The central bank raised P110 billion as planned via its offer of 28-day bills on Friday. Demand for the securities reached P139.55 billion, higher than the P125.35 billion in bids seen a week earlier.

Accepted rates for the short-term bills ranged from 1.705% to 1.9676%, wider than the 1.7025% to 1.825% margin logged a week earlier. This caused the average rate of the debt paper to rise by 4.43 basis points to 1.767% from 1.7227% quoted previously.

The BSP bills and the term deposit facility are tools used by the central bank to mop up excess liquidity in the financial system and guide market rates.

The higher rate fetched for the BSP bills reflect risk-off sentiment after the release of data showing an increase in the national government’s debt, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

Preliminary data released by the Bureau of the Treasury on Thursday showed the national government’s outstanding debt inched up 0.28% month on month to P11.64 trillion as of end-August. It also increased by 21% from a year earlier.

The government incurred debt worth P1.85 trillion over the first eight months of 2021, 18.9% higher year on year.

Mr. Ricafort said the peso’s weakness also affected yield movement.

The peso closed at P51 per dollar on Monday, Tuesday, and Thursday, its weakest showing in more than a year or since its P51.07 finish on March 26, 2020.

The local unit is down by P2.973 or 6.2% against its close of P48.023 per dollar on Dec. 29, 2020. — L.W.T. Noble

Investments boost PHL net external liability position at end-June

HIGHER investment inflows widened the country’s net external liability position at end-June, the Bangko Sentral ng Pilipinas (BSP) said late Thursday.

Preliminary data released by the BSP showed the country’s international investment position (IIP) stood at a net external liability of $23 billion as of June, 54.3% increase from the $14.9 billion seen at end-March. This was also 22.1% wider than the $18.8 billion seen as of June 2020.

The IIP takes stock of a country’s financial assets and liabilities.

BSP data showed the country’s external financial liabilities grew 5% to $258 billion as of June from $245.7 billion at end-March. Year on year, it rose by 14.8% from $224.8 billion.

Other sectors accounted for 63.9% or $165 billion of the country’s total external financial liabilities. The rest was held by the national government and banks, which held financial liabilities worth $58.5 billion and $33.2 billion, respectively.

“The expansion in residents’ external financial liabilities stemmed mainly from the increases posted in outstanding foreign portfolio investments, both in the form of debt securities and equity and investment fund shares, FDI (foreign direct investments), and other investments,” the central bank said.

Net FDI inflows increased 40.7% year on year to $4.298 billion in the first half of 2021.

Meanwhile, short-term portfolio investments yielded a net inflow of $334.51 million in June, turning around from the net $235.14-million that left the country a year earlier. However, hot money posted a net outflow of $106 million in the first six months of 2021, smaller than the $3.3 billion seen in the same period of 2020.

The increase in liabilities outpaced the 1.8% growth in the country’s external financial assets to $235 billion as of June from $230.8 billion at end-March. It also rose 14.1% year on year from the $206 billion logged at end-June 2020.

The BSP held 47.1% or $110.8 billion of the country’s total external financial claims.

Among these financial assets, 45% or $105.8 billion were in the form of reserves. The claims also include debt instruments (15.5%) equity and investment fund shares (12.2%), and portfolio investments (13.2%). — LWTN

Maya Bank names fintech exec as president

VOYAGER Innovations, Inc. has appointed seasoned fintech executive Angelo Madrid as the president of its new digital lender Maya Bank.

The central bank’s Monetary Board has confirmed Mr. Madrid’s appointment, Voyager said in a statement on Friday.

“I’m truly honored to be appointed as Maya Bank president as we blaze the trail with digital banking services. Our goal is to foster greater inclusion as we offer the best suite of digital banking products and services at scale and with trust and credibility,” Mr. Madrid was quoted as saying.

“Maya Bank will usher the next phase of our digital financial services journey. I’m confident that [Mr. Madrid]’s extensive global experience and proven track record in the Philippines will help us achieve this vision with speed and urgency,” said Shailesh Baidwan, Voyager and PayMaya Philippines president and a member of the board of directors of Maya Bank.

Mr. Madrid was previously with US-based fintech lending startup Tala as its country manager for the Philippines. He led the firm’s local unit to become a team of 200 employees catering to 1.5 million borrowers in 2020 from being a five-person operation back in 2017.

He has over 15 years of experience across banking, fintech, microfinance, and law. He has held leadership roles in Citibank New York, including co-founding a fintech startup within Citi Ventures that uses alternative data to help consumers gain access to credit.

Mr. Madrid was also previously a banking and finance lawyer at Baker & McKenzie (QT) and Sycip Law.

He completed his bachelor’s degree in Management and his law degree from the Ateneo de Manila University. He also holds a Master’s in Business Administration from Duke University – Fuqua School of Business.

The Bangko Sentral ng Pilipinas granted Maya Bank a license to operate in September.

Voyager Innovations is the digital arm of PLDT. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls. — LWTN

Peso climbs on as factory activity improves

THE PESO rose versus the dollar on Friday on stronger manufacturing data and expectations of higher remittances ahead of the holidays.

The local unit closed at P50.79 per dollar on Friday, appreciating by 21 centavos from its P51 finish on Thursday, based on data from the Bankers Association of the Philippines.

However, it weakened by 14 centavos from its close of P50.65 a week earlier.

The peso opened Friday’s session slightly stronger at P50.96 a dollar. Its weakest showing was at P50.97, while its intraday best was at P50.78 versus the greenback.

Dollars exchanged dropped to $882.16 million on Friday from $1.104 billion on Thursday.

The peso rose on data showing improving factory activity in the country, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

The Philippines Manufacturing Purchasing Managers’ Index stood at 50.9 in September, beyond the 50-mark that separates expansion from contraction, IHS Markit reported on Friday. This is a turnaround from the 46.4 logged in August and is the best reading since the 52.2 in March.

IHS Markit attributed the improvement to eased restrictions last month following the strict lockdown in August.

Mr. Ricafort added that the peso appreciated due to expectations of a seasonal increase in remittance inflows ahead of the Christmas holidays.

Meanwhile, a trader said the peso strengthened on market preference for the local unit after US initial jobless claims increased for the third straight week.

Reuters reported that more Americans filed for jobless claims last week amid more people in California being enrolled to another assistance program.

Initial claims for state unemployment benefits increased by 11,000 to a seasonally adjusted 362,000 for the week ended Sept. 25, marking the third straight weekly increase. — LWTN with Reuters

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